Sam Altman, CEO of OpenAI, has financially supported the largest basic income study conducted in the United States to date. This initiative, run by his nonprofit organization OpenResearch, involved providing unconditional cash payments to individuals living below the poverty line for a period of three years.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these individuals received $1,000 per month as recipients, while the remaining participants, who formed the control group, received only $50.
Findings from the study revealed that the recipients of the larger payments experienced greater flexibility in job searching, allowing them to pursue positions that aligned better with their personal preferences and values.
According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”
One study participant expressed the impact of the cash transfers, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky. I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Another recipient shared their experience of accepting a lower-paying entry-level job in a desired field, which ultimately led to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study did not find significant differences in employment levels between the groups, indicating that increased payments mainly contributed to higher spending on basic needs, including food, housing, and transportation. Recipients used the funds to address health expenses such as braces and alcohol treatment. Although the initial cash support alleviated some stress, many of the health benefits diminished over time.
Sam Altman has advocated for universal basic income as a potential solution to the challenges posed by AI’s impact on the labor market, including job displacement.
A correction has been made regarding the conducting organization of the study, clarifying that it was Sam Altman’s nonprofit OpenResearch and not OpenAI that led the initiative.